Jim Willie: The Dollar is Going to Have to Be Replaced

 The stock market is in for “a real ugly waterfall decline.You’ll see 8-1,000 points down, 300 points up, then it goes down hard, then it comes up again very slightly, fooling people, drawing in more money.

We call them “bear traps” says Willie in an interview with Paul Sandhu  on September 2, 2015. Stating that the dollar’s rise is its prelude to its “disappearance”, Willie elaborates:

“This is exactly how I think the dollar is going to go away: the prestige of the dollar vanished with zero percent and QE in 2012. The Fed is going to get overwhelmed.

They are covering the Treasury bonds that are being dumped by the eastern nations, the oil hedge losses from the Wall Street and London banks, the interest rate losses from JP Morgan and the derivative losses from the dismantled petrodollar.

QE to Infinity Squared

The morons are out there talking about an interest rate hike, when the exact opposite is happening. They are going to keep the interest rate low, because they can’t afford to raise it, as it will destroy the Treasury bonds.

The QE volume is accelerating into the TRILLIONS each month! This is not $40 Billion a month, this is probably $1-$3 Trillion per month. NOT per year – per MONTH!

The Dollar is Going to Have to be Replaced

The dollar is going to rise and rise until it has to be replaced. The US government has been holding emergency meetings all summer long about the big “shocks” to come in the autumn. The US government is going to have to come up with a new dollar. But it also means foreign countries are going to replace their treasuries with gold.

Gold and Silver

They are going to have gold stored in their banking systems. Treasuries will be sold and removed by foregin banking systems and replaced with gold. Then comes the gold and silver-backed BRICS currencies and I think there’s going to be more than one. I think there will be one in every region of the world.

I wouldn’t worry about the gold and silver prices. There is going to be a big divergence between the paper and the physical price, which we are starting to see in silver.

What is the price of gold? I pay much more attention to the price premium for the shipment and delivery of physical than I do the paper bullshit price coming out of the Comex,  where they haven’t delivered on any gold futures contract in 3 full..years!

It’s nothing more than a paper vehicle for suppressing the gold price. It’s not a valid price and that’s why I haven’t even checked it more than a dozen times since 2012.   It’s not a gold market – there’s no metal changing hands!

The US is Going to Be Like Venezuala

I think the US is going to become the same as Venezuala, when they [the US] have their own currency. In Venezula, they are exporting rice, beans and toilet paper in order to raise currency to offset their big current account deficit.

I believe we will see in the US in the next year or two, a big movement to export whatever is not nailed down in the US , that’s produced in the US – to offset the current account deficit of 1/2 trillion dollars, which is the amount before the demand for Treasuries went away. There are no buyers for the Treasury bonds anymore, so it’s working its way to $1 Trillion now.”

When asked what he thought about the upcoming presidential election, he said, “I think that in a year and 4 months from now – if the dollar is still standing, I bet that another unknown [like Obama] will be sitting in the White House and they will have been bought off by the bankers. The checks and balances are long gone.”

Source: GramsGold.net